Many people are looking to invest so that they can create passive income streams. Recent surveys from You Gov America show that approximately two in five (43%) American adults have money invested in the stock market. Though promising, this number does not reflect those that see valuable returns. In fact, another survey found that 45% expressed regrets over their investing approach as it has not yielded their desired results. When asked what they would change, many cited modifying their budget, paying more attention to the market, or consulting with a professional.
The financial industry is tricky and can seem confusing to new and experienced investors alike. This is why some professionals have dedicated their careers to learning and navigating its complex landscape. With their financial knowledge, they can share tips on becoming a successful investor and guide individuals on maximizing their assets.
Listed below are four professionals that can help you get more returns on your investments:
Financial Analysts
Financial data can reveal more than essential information on previous transactions while also predicting future expenditures. This is why the job description of a financial analyst emphasizes analysis, forecasting, and strategic thinking as crucial skills. Clients benefit from hiring these professionals since they are tasked with analyzing an individual or organization’s financial data to predict their returns and create reports to inform investment decisions.
Financial analysts craft sound investment strategies by forecasting market conditions. They are concerned with the bigger financial picture and see how their clients fit. They conduct research on the state of microeconomic and macroeconomic affairs and compare this to their client’s past investment performance. Using their analysis to create a baseline, they can provide valuable insight into what their client’s next investment move should be, such as where they should put more money or which investment streams to back out of.
Financial Planner
Financial planners counsel people on achieving their long-term goals, like retirement plans, or in severe cases, how to overcome debt. This is why they are held to high ethical standards and must first pass a board exam and undertake an apprenticeship before they can be certified. After all, a financial planner’s responsibility is to advise and create a financial plan for their client’s best interests.
Financial planners assess the overall financial state of their clients to determine where there can be movement. They check the allocation of a budget – savings, taxes, and insurance – to ensure that it is balanced and correct while also finding new avenues of investments. By understanding the limitations of their client’s circumstances, they can tailor their advice and create an investment plan that their clients will be comfortable with.
Investment Adviser
Understandably, choosing the right investment is easier said than done. This is where investment advisers come in. These professionals counsel, recommend and oversee their clients’ investment strategies. They are government regulated and must be registered to earn the title, as detailed in the investment adviser requirements.
3 out of 4 Americans worry about making the wrong investing decision. Respondents said they feel intimidated and want to be more informed. This is what investment advisers aim to address as they identify the correct investments that would fit their client’s goals. These are professionals specifically intended for clients looking to expand their assets. If a client is interested in a niche investment or tactic, advisers can also serve as researchers to mitigate risks and uncertainties.
Portfolio Manager
Investing goes deeper than just acquiring these assets; they also require management. If an individual owns multiple assets and revenue streams, supervising all of these may be too much work, and it could lead to mistakes or missed opportunities that result in a loss. The duties of a portfolio manager are to balance out their client’s portfolios, settle their taxes, and provide strategies to optimize investments further.
Portfolio managers are primarily for clients who have already put their money into multiple investments but aren’t seeing the growth that they desire. They understand that multiple assets each require a different set of strategies to be maintained and positioned for growth. With the help of knowledgeable portfolio managers, investors are equipped with the help of someone who can actively go through their existing stakes and make the right decisions to generate optimal returns.
If you are looking to get more returns on your investments or need some more guidance, do get in touch with one of the above financial professionals listed above. Find a recommended one and understand how they are compensated to ensure their interests are aligned with yours.
Article was written by Roan Jennings
Roan is a freelance writer with a passion for finance and entrepreneurship. She believes financial literacy should be accessible to all. When she’s not working, you can find Roan golfing or spending time with her two cats, Daisy and Cleo.
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